A bill to amend title 5, United States Code, to provide for adjustments to Federal personnel ceilings based upon the extent that Federal functions are contracted out, to provide that performance in administering personnel ceilings and contracting-out requirements are taken into account in evaluating the performance of Federal executives and managers, and for other purposes.

[AI summary unavailable — showing source text] Permits an executive agency to conduct a comparison of the costs of agency performance of a function involving personal services with the costs of performance of that function under a contract only if the head of that agency certifies to the Office of Management and Budget (OMB) specified information regarding the cost-effectiveness of the agency unit which performs or would perform that contract. Requires such a cost comparison to be conducted prior to any renewal of a contract resulting in a significant increase in cost to the United States. Sets forth a formula for determining when a renewal results in a significant increase in costs. Requires each Executive agency, within ten days after entering into a personal services contract with any person or unit of State or local government, to report to the Office of Management and Budget (OMB) the number of agency employees which would be required to perform the contracted functions. Directs any agency which is prevented because of a personnel ceiling from performing a function which the agency determines would be performed by the agency more effectively than by contract, to submit to the OMB, within ten days of such determination, a r…